JD Sports, a major retailer of brands such as Nike and Adidas, reported a significant decline in sales performance, leading to a 14% drop in its share price on Thursday. The company officially lowered its profit forecasts, citing a broader trend of reduced consumer spending as a primary factor.

While both The Independent and The Guardian agree that the cost-of-living crisis is impacting the company’s ability to sell trainers, the outlets differ on the scope of the explanation. The Guardian explicitly links the current economic environment to geopolitical instability, specifically citing the US war on Iran as a driver of inflation. The Independent focuses more narrowly on the domestic impact of the cost-of-living crisis without detailing specific geopolitical triggers.

JD Sports management has signaled that these challenges are not expected to be short-term. Executives warned that the current drop-off in consumer demand is likely to persist through the second half of the year. The company noted that it has struggled to move inventory quickly in key markets, most notably the United States, as shoppers prioritize essential spending over discretionary items like premium sports footwear.